The Direct Tax Vivad se Vishwas Bill, 2020 (the scheme), tabled in Parliament on February 5, 2020, proposes an amnesty scheme for litigation pending as on 31.01.2020, before any of the appellate forums. Under the scheme, a taxpayer can settle a litigation by paying the tax on the disputed income, and get a full waiver of interest and/or penalty. The scheme seeks to meet two major objectives:
1 Reduce time and effort spent over long drawn litigation (~5 lakh pending cases)
2 Facilitate tax collection (~ Rs. 9.43 lakh crore of disputed tax) by the government stuck under litigation.
The following discussion in the form of Interview with CA Rasesh Shah and CA Mehul Shah conducted by CA Hardik Kakadiya, Secretary, Chartered Accountant Association Surat gives an overall glimpse of the Vivad Se Vishwas Scheme as proposed in Budget 2020.
Also watch the Followup Interview after the Amended Bill as drafted in the end of February 2020.